Germany plunges into recession; virus-induced slump may last until mid-year

To cushion some of the blow, Berlin has passed a rescue package totalling 1.1 trillion euros

Europe's economic powerhouse Germany plunged into recession in March, with the slump sparked by the coronavirus pandemic likely to last until the middle of the year, the economy ministry said Wednesday.

"Falling global demand, interruption of supply chains, changes in consumers' behaviour and uncertainty among investors" had all made themselves felt in the export giant, the ministry said.

The economic blow from the virus fell just as Germany was beginning to recover from a 2019 marked by the impact of trade wars and Brexit fears. Industry in particular had seen rises in new orders and activity as 2020 got underway,